We first build a fair wage model in which effort varies over the business cycle. This mechanism decreases the need for …

interim performance against the benchmark. Yen reserve managers that rank low show a tendency to increase effort, as proxied …, possible enhancements to the design of the tournament are discussed. These might involve an increased reward for effort and …

fact, we propose a business cycle model with employment adjustment costs, variable hours and labor effort. We show that, in … our model with variable effort, greater labor market frictions are associated with procyclical labor productivity as well … as stable employment. In contrast, the constant-effort model fails to replicate the observed cross-country pattern in the …